How to Select a Financial Advisor

Article submitted by John M. Dinino, ChFC, CLU, MBA, RFC.
For more information, he can be reached at 800-999-1840.

For those who have worked hard building their retirement nest egg finding an advisor to help them plan is important. A Financial Advisor may be one of the most important professionals one hires and given the numbers claiming to be advisors today it is difficult to know just who or what to look for. Since a Financial Advisor can help make the most of your assets the one chosen could make the difference between accomplishing goals or a future of financial doubt.

So just what does a financial advisor do? Generally just what is implied an advisor will help plan your finances. Through the creation of a plan designed around your objectives, risk tolerance, suitability, income and expense requirements, family and lifestyle a good advisor will help you decide how best to meet your personal goals and objectives the same way you do your personal physician. A physician monitors your health through regular checkups and refers you to a specialist, dietician, cardiologist, etc. when needed. The financial advisor monitors your financial health through regular reviews and refers you to specialists such as attorneys, insurance agents, bankers, investment brokers, etc when needed.

Do your homework. It is important to select the right one. Ask questions about credentials, including licenses held, certifications received, experience, and background, services that are offered and at what cost to you. Also, ask for references from current clients.

Before you meet with a potential advisor sit down and outline your own goals. At what life stage do you currently find yourself in? Are you retired or considering retirement in the near future? What are your plans in retirement, travel, sports or family? Do you have discretionary income or just about making ends meet? Is your estate setup to pass efficiently? For that matter have you even considered how your assets will pass? These are all very important questions that need consideration.

Selecting the right advisor is crucial. You should meet and interview several candidates. Advisors use different approaches. Be certain they are compatible with your ideas. Don't procrastinate but interview until you feel comfortable. Meeting with at least three advisors would be my suggestion.

Ask the potential advisor, How many clients is the advisor handling and how accessible is the advisor. You will want an advisor who personally answers your questions and returns your calls. You should feel comfortable with this individual since you will not only be giving personal and confidential information to them, but your financial future may be in the hands of the advisor.

Discuss what services to expect and at what cost. A financial advisor can be commission based, fee based or a combination of both.
Once you have completed the necessary pre-screening, you can feel more confident you have selected an educated and experienced professional who will help guide you on the way to your financial goals.